8:40am (EST) We all know that stock-splits don’t mean much in monetary value when a company announces a 2-for-1 split. It means you own twice as many shares as before but at half the price. We haven’t seen too many of these events lately because of what the market has been through over the past several years but they do happen. Green Mountain Coffee Roasters (GMCR, $72.60, up $0.72) is a recent example as they did a 3-for-2 split back in June. They also did a 3-for-1 split back in July 2007. In the past, when stock-splits were more frequent, a company would always seem to split their stock when it got to a certain price. Then again, there are some companies like Berkshire Hathaway (BRK.A, $100,401.50, up $1.50) and Google (GOOG, $514.18, down $3.36) who plan to never split the outstanding shares. Yes, that quote for the Class A shares for Mr. Buffet’s empire is correct. For 100g, you too, can own ONE share of Berkshire… Anyway, with Apple (AAPL, $189.27, down $0.98) approaching $200, I did some research to see when they might announce a split. Apple has split its stock 3x since 1987 and each time it was a 2-for-1 deal when the stock was trading at $80-$100. Judging by history, Apple is overdue. I cover stock-splits and how to play them in the Momentum Options Trading Manual (which is almost complete and will be available soon) but it remains to be seen what Apple does. Normally you see a run into the split and a little after, then a sell-off, then another rally. Of course, old market principles have been thrown out the window but it will be interesting if Apple were to announce a split. And what better way when the company reports earnings on October 19th? Apple continues to push 52-week highs and by splitting the stock, it makes it “cheaper” for the investment world to buy shares at $100 (2-for-1) or $65 (3-for-1) instead of $200. Apple is known for making a splash and what better way to do it when the company has center stage once again in two weeks? It may not happen but don’t be surprised if it does… Quick Note: We are pleased to announce that we are upgrading our servers this weekend to allow us to send UNLIMITED emails to our subscribers. Many of you wanted this service because you told us you could not check the website daily (or at work, sly grin) and it was a GREAT idea. Because of this, the website may work slow over the weekend or at times may be down but we will be back to normal by Monday. We also have the CURRENT TRADES update for this morning so please check the MEMBERS AREA for the latest and greatest.]]>
